A babysitter or nanny is normally considered self-employed if they provide the services in their own home. In that situation you don’t have reporting or withholding requirements. The babysitters still must report their income to the IRS. However, you don’t need to issue a 1099 or W2 or withhold taxes.
Remember however that if you wish to claim the Child and Dependent Care Credit on your return, you must provide the sitter's name, address, and SSN.
**Answers are correct to the best of my ability but do not constitute tax or legal advice.